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State Capacity and Long-Run Performance

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  • Dincecco, Mark
  • Katz, Gabriel

Abstract

We examine the long-term links between state capacity and economic performance. Our database is novel and spans 11 countries and 4 centuries in Europe, the birthplace of modern economic growth. A dynamic simultaneous equation panel model indicates that the performance effects of states with modern extractive and productive capabilities are significant, large, and robust to a broad range of specifications, controls, and sub-samples. We find that the establishment of an effective state increased per capita GDP by 7 percent over a half-century and by 11 percent over a full century.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38299.

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Date of creation: 23 Apr 2012
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Handle: RePEc:pra:mprapa:38299

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Keywords: political regimes; state capacity; public services; economic performance; European history;

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References

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Cited by:
  1. Boffa, F. & Piolatto, A. & Ponzetto, G.A.M., 2012. "Centralization and Accountability: Theory and Evidence from the Clean Air Act," Discussion Paper, Tilburg University, Center for Economic Research 2012-033, Tilburg University, Center for Economic Research.
  2. Cingolani, Luciana & Thomsson, Kaj & de Crombrugghe, Denis, 2013. "Minding Weber more than ever? The impacts of State Capacity and Bureaucratic Autonomy on development goals," MERIT Working Papers 052, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Mark Dincecco & Massimiliano Gaetano Onorato, 2013. "Military Conflict and the Economic Rise of Urban Europe," Working Papers, IMT Institute for Advanced Studies Lucca 7/2013, IMT Institute for Advanced Studies Lucca, revised Nov 2013.
  4. Cingolani, Luciana, 2013. "The State of State Capacity: a review of concepts, evidence and measures," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Daron Acemoglu & Camilo García-Jimeno & James A. Robinson, 2014. "State Capacity and Economic Development: A Network Approach," NBER Working Papers 19813, National Bureau of Economic Research, Inc.

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